§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the amount of the mortgage taken out by the median mortgagor claiming mortgage interest relief, the increase since May in the rate of interest, the amount of interest payable in a full year, and the total amount of relief at the standard rate payable in a full year at the standard rate of income tax.
§ Mr. Norman LamontIn 1988–89 the estimated median mortgage is £22,000. The mortgage interest rate has increased since May from 9.75 per cent. to 12.75 per cent.; and increase of three percentage points. The gross amount of interest payable in a full year at 1988–89 levels by the median mortgagor is £2,550; the amount of relief at the basic rate of income tax is £640 leaving a net interest payment of £1,910 in 1988–89.